Recently WSJ reported that two arch rivals BMW and Mercedes would be teaming up to source their raw materials together so as achieve efficencies in their SCM and reduce costs overall. Well the thought process sounds good, the two companies together will have more orders and thus will be able to negotiate better deals. this would also ensure that they would have fewer suppliers and these suppliers would be nurtered so as to develop a 'structural bond' with the companies resulting in the employment of better management production and operations techniques like the JIT .
The only grey area in this is the reaction of the loyal customer base of customers , but as long as they get world class products who cares .
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